More and more organisations are searching for better, more effective ways to hire talent without having to create an internal army of recruiters as competition for the finest personnel intensifies.
What is RPO?
Recruitment process outsourcing a.k.a. RPO is the support system to a company’s permanent workforce. It is a type of model that covers the extensive backfilling that goes into the handling of the workforce by an external recruitment resource. The various processes included in this comprehensive plan are cost savings, predictive talent analytics, market intelligence and the identification of the right talent for your organization.
In simple words, RPO is a business model where a company outsources the management of the recruitment function, in part or wholly, to a third-party expert to drive cost, quality, efficiency, service and scalability benefits. The third-party, RPO vendor, is responsible for placing people into the organization. Recent statistics suggest that hiring an RPO vendor can reduce hiring time by 40% and deliver cost savings of more than 45%, a deal worth investing in.
The question that arises is whether RPO is worth investing in. A company needs the complete attention of all kinds of experts in this field. A quality RPO vendor would be able to construct an outsourcing program that would blend the needs of recruiters, candidates, the latest technology, and the best of practices to transform the organization’s talent acquisition unit.
It casts a wide net that pulls in grade-A solutions to end-to-end recruitment processes, sourcing, assessing, placing, on-boarding and reporting while utilizing resources such as innovative technology and key performance indicators. Leaving no plate unturned.
RPO has its own set of flavors, the various types of RPO that cater to various needs. There is an end-to-end RPO solution that focuses on a certain division or encompasses all hiring across the enterprise. Second, there is Project RPO solution which answers to a specific professional need and expert talent acquisition. Third, an On-demand RPO solution involves outsourced recruiters that join your talent acquisition team for a time period or project. And lastly, there is the solution of hiring an outsourced provider to build your contingent workforce according to your needs, time and access.
Does every organization need an RPO? Maybe? Yes? It depends. But there is no denying the benefits of having one. It reduces cost per hire, shortens time to hire, helps manage supply, increases access to sourcing channels and so much more. Drawing back to solid numbers, models and plans such as these help in the transparency of growth. They mine data in a manner that is continuous and with increased optimization.
All in all, an RPO solution is the answer you did not know you were looking for. A weather forecast for future hits.
Benefits of RPO
An RPO is synonymous with scalability and flexibility. It helps build a diverse pool filled with different niches and in-demand skills. It mitigates risks with compliant hiring practices, if this doesn’t convince you then here, we dive into a little more detail:
1. Cost Effective
An RPO provider not only guarantees that you hire and retain the best talent, but it is also more affordable than traditional hiring methods. As time-to-hire, cost-to-hire, and quality-of-hire metrics are frequently used to evaluate RPO providers, it is their responsibility to prevent permanent job openings from going unfilled for extended periods of time. Every day that a position is unfilled results in higher expenses and lower output. These unfavorable aspects are kept to a minimum with a completely optimized RPO.
2. Latest Technology
For HR professionals, keeping up with industry innovation is challenging. Even the most ambitious firms may shudder as a result of spending hundreds of thousands or even millions of pounds or dollars on talent acquisition technology due to budget constraints.
RPO providers often make investments in cutting-edge technology, such as sophisticated VMS systems and data analysis tools, to make sure that clients get the expertise they need to thrive.
3. Improved Efficiency
In large organizations, various business units frequently approach recruitment on their own. Another division may decide to use their internal HR department, while an IT section may rely on pricey, temporary recruitment firms. Both of these strategies are ineffective; the former leads to unnecessary spending, while the latter places a load on HR departments, who are under growing pressure to provide results.
Hiring procedures are more effective with a complete, end-to-end RPO solution because all permanent hiring is centralized. RPO providers offer the expertise, experience, and best practices necessary to deliver the greatest results for a client because they work with companies all over the world. An RPO enables great talent delivery across a firm, as opposed to depending on fragmented internal strategies.
4. Enhanced candidate-employer engagement
Getting the candidate’s experience right is no easy feat. It takes a lot of time and frequently diverts HR departments from their main goals. For a business, an RPO provider delivers the knowledge and internal know-how to fully optimize the applicant experience. This affects a company’s capacity to expand its market share within its industry and increases its chances of luring top talent.
5. Better Insight
Any strategic choice must be built on data science. Even while internal recruitment teams and HR departments frequently are aware of this, a number of issues continue to hinder firms.
For starters, technology is expensive, and HR technology frequently falls low on the list of priorities. Second, HR professionals frequently lack the technical know-how required for accurate data analysis. Last but not least, a corporation’s data primarily relates to the company itself and ignores the bigger picture.
In all of these ways, a recruiting process outsourcing solution is beneficial. An RPO provider can evaluate previous market and company data to strategically estimate future workforce needs by using the most up-to-date technologies and data analysis skills. Since talent is the most crucial component of every firm, these insights offer extremely useful business information.
Is it for you?
RPO cultivates targeted sourcing and recruiting strategies for your company, enhancing the productivity of your staff. These methods enable an RPO Partner to find more prospects for each position—more candidates mean more options—in conjunction with dedicated recruitment resources. So, the question is more than, ‘Is it for you?’ but, ‘Are you ready to invest in a new horizon for your company?’